Open banking and insurance, so much more than PSD2
The world is changing fast and the banking and insurance industries are no exception. The second European Payment Service Directive (PSD2) has triggered banks and insurance providers to collaborate with each other for the benefit of the end customer. This will lead to an open banking and insurance landscape where banks, fintech companies, insurance companies and other organisations cooperate to improve their existing services and create new services for their customers. A new world of opportunities arises.
Customers are at the core of KBC’s company strategy and culture. We therefore embrace all innovations that will improve our customer service, proposition and dialogue. KBC not only welcomes innovation; it is going for a proactive transformation towards open banking and insurance.
The arrival of PSD2
In 2017 KBC set to work by developing the PSD2 APIs as requested by the EU. We offered our PSD2 APIs in a dedicated developer portal, but their use remained fairly limited.
Fintech companies are currently in a difficult situation. The present legislation has imposed certain obligations, but the lack of market uniformity is slowing things down. Most banks and insurance providers have not managed to offer stable, functioning APIs by the PSD2 compliance deadline of 14 September 2019.
PSD2 legislation may be the spark for the emergence of open banking and insurance ecosystems, but it will be digitisation itself that will blur the boundaries between the various economic industries.
Digitisation has enabled many companies to offer new products and services to add customer value and boost revenue. This will have a significant impact on the financial and insurance sectors, as financial and insurance services are usually not the consumer’s primary need. Wherever the need for a certain product arises, financial services will be sold alongside the product with as little extra effort required as possible.
Beyond banking and insurance services within KBC
Meanwhile, KBC has invested in its own digital channels to ensure a great customer experience. Our awarded mobile banking application KBC Mobile is the centrepiece of this approach. KBC customers are already using KBC Mobile to buy bus and train tickets, pay for parking, check their luncheon voucher balance and so on. KBC is aware that a whole new world of services is opening up, and is expanding its services well beyond banking and insurance.
Offering banking and insurance solutions outside KBC
KBC keeps expanding its services for its customers. Relying solely on our own distribution channels would be a restrictive approach. Have you ever purchased a home and wondered how great it would be to be able to go through the entire process of buying a house, getting a mortgage and taking out the necessary insurance all in the same place and at the same time? Open banking and insurance allows for a better exchange of information between organisations, but can do so much more.
If KBC offers its solutions through partners in other industries, it can create a whole new level of customer-centric design.
The future of KBC co-creation with fintech companies and non-financial partners is bright. KBC can close the customer loop by joining lots of different services. Today we all want instant, personal, relevant services and one-stop shops. KBC wants to offer these services to its prospects and partners, and we are ready to build them together.
Open banking and insurance in practice: APIs
In this connected open banking and insurance landscape, secure exchange of information is paramount. Most information will be exchanged through API connections. KBC aims to offer APIs for a vast range of KBC products and services as a catalyst towards open banking and insurance. A convenient overview of API solutions is already available on this developer portal, but we also keep our eyes on the horizon, beyond what is currently available on the portal. We strongly urge our partners to discuss with us any requirements they may have for further development.
Enter the world of open banking and insurance